By Mauro Orru
SMCP said that 2023 sales and its adjusted earnings margin should come slightly below its guidance after what the company called a difficult December in Europe, particularly in France, and China.
The French fashion group, owner of the Sandro, Maje, Claudie Pierlot and Fursac brands, said Friday that annual sales are expected at roughly 1.23 billion euros ($1.33 billion), representing constant-currency growth of 3.8% from 2022, below guidance of mid-single digit growth.
Its closely watched adjusted earnings before interest and taxes margin should range from 6.4% to 6.6% of sales, also below guidance of 7% to 9%.
SMCP said its sales in the fourth quarter remained stable compared to 2022 at constant exchange rates in an deteriorating macroeconomic context marked by geopolitical tensions, weak household consumption and persistent inflation.
The announcement comes four months after the group lowered its sales and profitability forecasts for the year, with inflation weighing on consumer spending in Europe and consumption in China not showing the expected trajectory.
Write to Mauro Orru at [email protected]
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